First Acceptance Corporation Differentiates Operations from Iowa-Based Company; Tennessee Company Not Connected

Business Wire, Jan 11, 2005

NASHVILLE, Tenn. -- First Acceptance Corporation (NYSE:FAC), whose insurance subsidiaries provide non-standard private passenger automobile insurance and operate in many states under the trade name "Acceptance Insurance", said today "it is not affiliated nor involved in any manner" with Iowa-based Acceptance Insurance Companies Inc. ("AICI"), which filed for reorganization under Chapter 11 of the US Bankruptcy Code on January 7, 2005. AICI is the parent of Acceptance Insurance Company, which is currently in Rehabilitation and under supervision by the state of Nebraska's Department of Insurance and writes crop insurance policies.

Steve Harrison, President and CEO of First Acceptance Corporation, said he wanted to clarify any possible confusion about the Nashville-based company's operations with AICI. "It's apparent from several inquiries we have received that the similarity in names has caused some misunderstanding. We have never had any association whatsoever with the Iowa or Nebraska companies, nor are we familiar with any aspect of their business," Harrison emphasized.

First Acceptance Corporation, as previously announced with its first quarter earnings, provides non-standard private passenger automobile insurance primarily through employee-agents in 165 retail offices in seven states. The Company's insurance company subsidiaries are licensed to do business in 22 states.